The state GST department has unearthed a bogus billing scam operating from the city, allegedly involving fraudulent transactions worth ₹163 crore over the past two years, officials aware of the matter said.
They added that two brothers, who are partners of the accused firm, M/s Monga Brothers (Unit-II), Buddewal Road, have been arrested in connection with the matter.
They were identified as Pawan Kumar and Rohit Kumar. Divulging details on Friday, state finance minister Harpal Singh Cheema said the investigation found that the firm was operating a web of fictitious firms, creating fake Input Tax Credit (ITC) and defrauding the state exchequer. He added that the firm made purchases from 60 bogus companies, which were either suspended, cancelled or had made purchases from other suspended or cancelled dealers.
The minister said the total turnover of these 60 firms is approximately ₹1,270 crore.
Cheema said the state GST department conducted inspections, searches and seizures under Section 67 of the Punjab GST Act, 2017, at the business premises of the company.
Based on the investigation, the state taxation commissioner ordered the arrest of the partners of the accused form under sections 69 and 132 of the Punjab GST Act,” the finance minister added.
{{/usCountry}}Based on the investigation, the state taxation commissioner ordered the arrest of the partners of the accused form under sections 69 and 132 of the Punjab GST Act,” the finance minister added.
{{/usCountry}}Appealing to the business community to cooperate with the department and their taxes diligently, the minister warned that tax evaders will be dealt with strictly according to the law of the land.